The time-weighted return over the one-year period

Assignment Help Financial Management
Reference no: EM131350617

On January 1, 2013, Lucy deposited 90 into an investment account. On April 1, 2013, when the amount in Lucy's account was equal to X, a withdrawal of W was made. No further deposits or withdrawals were made to Lucy's account for the remainder of the year. On December 31, 2013, the amount in Lucy's account was 85. The dollar-weighted return over the 1-year period was 20%. The time-weighted return over the 1-year period was 16%. Calculate X.

Reference no: EM131350617

Questions Cloud

What is amount of money raised from bondholders : A company's assets will have a value, one year from now, equal to $45 millions if economic conditions are good or to $8 millions if the conditions are bad, the two scenarios are equally likely. The company currently has no debt and, after one year, i..
What was the investor rate of return : An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $.50-per-share dividend in 1 year, and then the stock is sold..
What is the project operating cash flow for the first year : Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million Operating costs (not including depreciation) 7 millio..
Reinvested at effective annual rate : Bob invests 2000 at an effective annual interest rate of 15% for 10 years, Interest is payable annually and is reinvested at effective annual rate j. At the end of 10 accumulated interest is W. Mary invests 500 at the end of each year for 20 years at..
The time-weighted return over the one-year period : On January 1, 2013, Lucy deposited 90 into an investment account. On April 1, 2013, when the amount in Lucy's account was equal to X, a withdrawal of W was made. No further deposits or withdrawals were made to Lucy's account for the remainder of the ..
Paper that describes a time in their academic career : Create a researched-based paper that describes a time in their academic career that they were challenged yet learned the concepts of the competencies. Students are expected to complete a critical analysis of the topic and are expected to use resea..
Equal opportunity in employment and sexual assessment : Equal opportunity in Employment and sexual assessment. Discuss whether there should be a different standard of behavior in the workplace compared to personal relationships. Discuss how a court should determine what constitutes sexual harassment and w..
What is the current value of car equity and debt : CAR Inc. will be liquidated in one year. The value of CAR's assets is currently $650 million, and next year it will be either $825 million or $400 million. What is the current value of CAR's equity? What is the current value of CAR's debt?
Calculate the weighted average cost of capital for tesla : You now have all the necessary information to calculate the weighted average cost of capital for Tesla. Calculate the weighted average cost of capital for Tesla using book value weights and market value weights assuming Tesla has a 35 percent margina..

Reviews

Write a Review

Financial Management Questions & Answers

  Covered interest arbitrage-compute the return on investment

Covered Interest Arbitrage (CIA) Outline the steps for CIA with the appropriate computation thereof and compute the profit. Compute the Return on Investment of $1 million and identify its components: For Interest Rate Parity to prevail, what should b..

  Calculate the two costs of two different strategies

For the scenario provided, calculate the two costs of two different strategies: The Sherman-Brown Chemical Company is in the process of developing an aggregate capacity plan for next year. Two alternative plans are being considered, level capacity wi..

  Compute the yield to call-taxable equivalent yield

A 3.80 percent coupon municipal bond has 10 years left to maturity and has a price quote of 94.35. The bond can be called in four years. The call premium is one year of coupon payments. Current yield %   Compute the yield to maturity.  Compute the yi..

  Issue paper on negative interest rates

“Like its peers in Denmark, the euro area, Sweden and Switzerland, the Bank of Japan will charge commercial banks for holding deposits with it. Almost a quarter of the world’s GDP now comes from countries with negative rates. Though they defy convent..

  What is your optimal recommendation

A Cfo believes project acceptance should be based on the nvp but Steve Camden, the president insists that no project should be accepted unless it's IRR Exceed the project's ris-adjusted WACC. now you must made a recommendation on a project that has a..

  Actual real interest rate and expected real interest rate

What is the difference between the nominal interest rate on a loan and the real interest rate?- What is the difference between the actual real interest rate and the expected real interest rate?

  Should the company buy and install the vending machine

You have been asked by the president of your company to evaluate the proposed acquisition of a new vending machine. The machine’s basic price is $100,000 and it will cost another $20,000 to modify it for special use by your firm. What is the operatin..

  Explain why limited leverage is good for business

Frank Smith has been a plumber in the college town of Turlock, CA for the last thirty years. All the people who know him call him Frankie because he is friendly, social, and charges a fair price for his services. His business has grown because new cu..

  Bankruptcy is the incentive toward under investment

One of the indirect costs to bankruptcy is the incentive toward underinvestment. Following this strategy may result in:

  Put option with the same strike price and maturity

A stock is currently selling at $60. Over each of the next two six month periods, the stock may move up to a factor 1.15 or down by a factor of 0.85 each period. Find the price of the call option. Find the price of a put option with the same strike p..

  Without referring to the pre programmed function

Without referring to the pre programmed function on your financial calculator, use the basic formula for the present value, along with the given opportunity cost r, and the number of periods, n, to calculate the present value of $1 in the case shown ..

  Information and forecasting

What Effects Aside From Cost Might Mr. Mcneely Consider When Implementing Edi?- Use the moving averages technique to find forecasted sales for the third quarter of 2004 based on actual sales.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd